2. 2 Discussion Do you think that buying an investment property is higher or lower risk than buying shares in 20 top Australian companies?
3. 3 Investment properties Residential properties Unit, Townhouse, Duplex, House Large quantity available and relatively low starting prices Relatively easy to buy and easy to get loan Growth in price in long-term if demand outstrips supply Commercial properties Shop, Office Harder to buy and requires more experience Higher rental yield than residential property Prices move in different cycle to residential property
4. 4 Investment propertiesCurrent situation The last boom finished in 2003 Rental yield dropped to historic low in 2003 Rent has risen strongly recently due to increases in income and immigration Rental yields are now higher than long-term average Little new supply of properties due to global financial crisis Shortage of rental properties pushing prices up RBA worried about property bubble so ↑ interest rates Strong property price growth after end of recession?
